Volumes sold by the oil marketing companies in FY17 hit 25.59 million tons – the highest on record – depicting a growth of over nine percent year-on-year. Among the three key products, Motor gasoline (petrol) remained the frontrunner in volumetric off take, while furnace oil and diesel sales also remained resilient.

June 2017 saw some slowdown in sales but that did not continue in July 2017; with FY18 commencing, sales for the three petroleum products in July 2017 stood at 2.2 million tons, up by 8.6 percent, year-on-year, while the month-on-month increase was around nine percent.

The growth was largely led by retail fuel - motor gasoline and high speed diesel in July 2017 with year-on-year growth of 36 percent and 14 percent, respectively. The same products saw over eight and 17 percent month on-month growth respectively in the same month.

As far as furnace oil is concerned, July volumetric sales of the black oil continued its year-on-year decline. After 12 percent year-on-year fall in June, furnace oil sold by the OMCs remained 10 percent year-on-year lower in July as well. And while month-on-month growth has been tepid as well, once can see that the trend in the fuel's off take has remained on the higher side generally on a month-on-month basis over the last few months largely due to the consumption in the power sector.

PSO being the market leader has been focusing on retail network driven sales, which has gained the OMC an increase in market share of white oil.

On the other hand, Hascol, which has emerged as the second largest OMC in terms of volumes, had seen the most volumetric growth in FY17, the same continued in July 2017 where the firm witnessed a rise in volumes by over 65 percent year-on-year; whereas the firm also surpassed the other listed OMC, APL in market share. Nonetheless, APL also depicted a growth in overall volumes by around 25 percent, year-on-year.

Copyright Business Recorder, 2017

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